Friday, September 30, 2022

PMC Bank depositors protest outside RBI HQ in Mumbai

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Mumbai: Punjab and Maharashtra Cooperative (PMC) Bank depositors gathered outside the Reserve Bank of India (RBI) headquarters in south Mumbai on Saturday and held a protest. The PMC Bank depositors gathered around 11.45 am, held placards and chanted slogans against PMC Bank and the RBI, a police official said.

The police was deployed at the site to prevent any untoward incident. The official added that no one has been detained or taken into custody.

Small depositors make up 63% of PMC Bank deposits

PMC, which is among India’s top 10 urban cooperatives, had total deposits of around Rs 11,600 crore as of September 19. Small depositors made up as much as 63 percent of this with an average balance of under Rs 10,000. Its loan book stood at Rs 8,880 crore. Out of this, Rs 6,500 crore was given to HDIL.

The backdrop

The RBI imposed severe restrictions on Mumbai-based PMC Bank last month and barred the bank from carrying out the bulk of its routine business transactions for a period of six months. “The issue of the directions by the Reserve Bank should not, per se, be construed as a cancellation of its banking licence. The bank will continue to undertake banking business with restrictions till further notice/instructions,” the RBI had said in a notification.
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RBI limited withdrawals from the bank at Rs 10,000 and banned the bank from carrying out any lending activities for the next six months. Such restrictions are placed on banks if the RBI finds that withdrawals are beyond the prescribed threshold in any given period. The curbs are placed to protect the interest of small depositors.

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